The market value of a leasehold property in Bishops Stortford is impacted by how long the lease has remaining. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed in advance of the 80 year cut off point. Statute enables Bishops Stortford qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society |
Lease extensions in Bishops Stortford can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bishops Stortford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold proprietor of a 2 bedroom flat in Bishops Stortford being sold with a lease of just over 72 years unexpired. Finn on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2010 we were approached by Dr L Cooper who, having purchased a ground floor apartment in Bishops Stortford in June 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Bishops Stortford with 100 year plus lease were worth £183,600. The average ground rent payable was £65 invoiced annually. The lease lapsed in 2083. Considering the 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
In 2009 we were phoned by Dr N Alexander who, having owned a purpose-built apartment in Bishops Stortford in September 1998. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable properties in Bishops Stortford with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease finished in 2094. Considering the 68 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.